Flutter rides out Aussie slowdown in ‘challenging racing market’ as FanDuel keeps US punt going
Gambling giant Flutter is holding on through a downturn in its Australian business while US online gambling is shoring up betting appetite in the US ahead of its upcoming additional float there.
Shares in the owner of major betting companies such as Paddy Power and Betfair tanked 11.6 per cent on Thursday morning after it said revenue from its Australia division fell 18 per cent year on year due to a “challenging racing market” and regulatory hurdles.
Meanwhile, in the US, online fantasy sports site FanDuel became the fastest-growing brand in the market with revenue flying up 52 per cent in the third quarter. Average monthly gamblers soared 38 per cent, largely thanks to the National Football League (NFL).
Flutter has grown average monthly customers by 16 per cent to 11.1m, with a five per cent increase in the UK. Flutter said a good kickoff to the Premier League is boosting retail revenue in the UK, which grew nine per cent in the third quarter.
Total revenue jumped up 13 per cent from to £2bn, up from £1.9bn last year.
It comes as the Irish company ploughs forward with an additional float in the US, announced in August and expected to go live on the market in the first quarter of next year.
London-listed Flutter said its place on the capital’s blue-chip exchange will remain unaffected but “the Group may pursue a primary US listing in due course”, subject to shareholder approval.
In September, Flutter bought an initial 51 per cent stake in Serbian gambling operator MaxBet Kladionica to boost its commercial prospects in the Balkans region.